Net income of DKK 2.1 billion. USD and a return on equity (ROE) of 20.1%: these good half-year results, presented for the first time according to IFRS 17 accounting standardallow managers to Swiss Re to confirm their financial targets for 2024.” We continue to enhance the overall resilience of the business through a disciplined approach to underwriting new contracts and by closely monitoring claims trends in our existing portfolios.” clarified Andreas Bergerthe new daily manager of the group Swiss Re.
Insurance income (insurance income), indicator specific to IFRS 17, thus amounts to 22.5 billion dollars for the group, and the subscription result (insurance service result) to 2.9 billion dollars. Return on Investment (ROI) of the group is 4%. “With this good start to the first half of the year, we maintain our target for 2024, namely a net result of more than 3.6 billion dollars at group level,” announced Andreas Berger.
A cat’nat’ experience with limited requirements
In detail, the branch of non-life reinsurance (non-life insurance) reports a profit of $989 million in the first half, for a combined ratio of 84.5%. This result, better than expected, is due to requirements attached to natural disasters relatively limited. Losses from natural disasters during the period of $138 million were mainly due to Noto earthquake in Japan and at tropical cyclone Megan in Australia.
There life reinsurance reports a profit of $883 million in the first half of 2024, thanks to an improvement in US mortality and increased investment income. But this result was penalized by the larger loss experience in the EMEA (Europe, Middle East and Africa) region.
Department of business solutions had a net profit of $435 million for the half year.
When announcing its first quarter results, Swiss Re announced its intention to give up iptiQin-house insurtech founded in 2014 to develop the distribution of white label insurance. The decision confirmed today by the reinsurer, with iptiQ recording a net loss of $182 million in the first half of 2024.
Prices rose 8%
The leaders of the Zurich group extended a welcome successful renewal of non-life reinsurance contracts in the first half, which proved to be in line with the objectives. The amount of collected premiums on 1eh July totaled $4.5 billion, a 7% increase over the amount of contracts up for renewal. As for prices, they increased by 8%.
According to the reinsurance company, the intensification of damages is caused by convective storm and floods justify an increase in prices in areas that were previously cheaper to insure. “I think the direct insurance industry has now realized this, estimated John DaceyCFO of the Swiss Re group, during an interview given to the American television channel CNBC International News. We are reaching a new balance that allows it to obtain the best prices to be able to pay for the necessary reinsurance to cover the risks we take on.”
